A Look At The Best Cloud Accounting Software for Small Business
Overwhelmed by your business accounting? Find bookkeeping to be a stressful chore? When you make use of accounting software for your small business, you can stay compliant and keep on top of all your incomings and outgoings, so when it comes time to file your tax returns, everything is already taken care of.
Cloud accounting has been transformative for many small businesses as it replaces the classic spreadsheets with a much smarter suite of online tools, which have automated settings to make bookkeeping as easy as possible.
As it’s accessible online, business owners can make use of it wherever they are, including on the job site, to make account management much more streamlined. The automation side of things greatly reduces the risk of errors, so you can avoid financial penalties and keep more of what you earn.
The best cloud accounting software for small businesses is compliant with HMRC guidelines, and makes tax returns less stressful, whether you’re a sole trader or a limited company. Here, we’ll look at how accounting software can help your business, and how to get started using it.
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4 Reasons Why Sole Traders Should Be Using Cloud Accounting Software
Getting set up with a new digital way of processing your business expenses and income can seem daunting at first, but when it’s set up correctly, you’ll wonder why you haven’t done it sooner.
- It’s much more accessible, as it allows you to perform bookkeeping tasks from anywhere you have an internet connection via your smartphone or laptop. This is perfect for sole traders who work on job sites, and all information is stored in the cloud immediately for you to access it later.
- It’s automatic, as instead of manually inserting everything into a system over and over for the same income or expenses, cloud software can avoid repetitive actions. It can sync directly with your bank and allows you to streamline your invoicing processes, freeing up your time to focus on more important things.
- It processes in real-time, which means that every financial aspect of your business is kept up to date every time you add a new invoice to the system or file expenditure. You can get an overview of how your business is performing directly from a dashboard, which gives you the peace of mind that everything is above board.
- It’s HMRC compliant, so when Making Tax Digital is rolled out in 2026, everything is shared with them and allows you to submit important filings such as quarterly VAT directly to the HMRC, as well as Self-Assessment. As it’s linked to the HMRC, there can be no surprises when it comes to paying your tax bill.
It’s easy to get set up with digital accounting software on your own, but your accountant can also show you how to do it so it aligns with their systems, depending on which cloud accounting platform they use.
What Are The Best Cloud Accounting Software Platforms?
There are lots of options to choose from when it comes to cloud accounting, and here are the top four that make bookkeeping for sole traders and small limited companies as easy as a few clicks every week.
Sage Accounting
Sage Accounting is one of the most established accountancy software providers around. Their Sage Line 50 software has been a favourite of small businesses for decades and the good news is they now provide a Cloud Accounting version. This provides everything you need to manage your finances online, it’s an efficient way to automate and track invoicing, manage cash flow, and simplify your tax and VAT submissions.
Xero
If you’re a growing business that needs accounting software that can scale with you, Xero is a great option. It includes everything from linking your bank account to invoicing features and tracking of expenses. It’s ideal for sole traders, and can give accurate forecasting of your cash flow.
FreeAgent
The perfect cloud accounting tool for both freelancers and contractors, FreeAgent has a clean interface that is easy to use. It can be set up to automate many regular expenditures, such as claims for mileage, but it also allows you to track all of your expenses in one place and can be used for Self-Assessment returns.
QuickBooks
One of the most popular types of cloud accounting, QuickBooks has everything you could need, from tracking of expenses to automatic invoicing, the ability to file VAT returns, as well as control of your payroll. It’s effective whether you plan on using it from a laptop or from your smartphone.
What to Consider When Choosing Your Accounting Software
Here are some questions to think about when deciding which cloud software to use for accounting and bookkeeping purposes:
- How big is your business?
- Is it likely to expand in the near future?
- What features does it need to have?
- Does it need to include payroll tracking?
- What is your budget for a subscription?
- Is it the same one as your accountant uses?
- Can it connect to your bank?
- Does it work in real-time for transactions?
- How much time will it save you each month?
These are the main things you should be considering, and most of the popular accounting software platforms will be ideal for a sole trader or small business.
Go Digital With Pier View Accounting
Digital accounting is the future, and Pier View Accounting encourages all of our clients to use some form of cloud-based software to keep track of their expenses.
We are fully versed in all aspects of HMRC-compliant software such as Sage Accounting, Xero, QuickBooks, and FreeAgent, and we can walk you through exactly how to do it so you’re aligned with the systems we use here.
Get in touch today for professional, personalised accounting support for your small business.